Why is Supreme Facility falling/rising?

Sep 30 2025 12:05 AM IST
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As of 29-Sep, Supreme Facility Management Ltd's stock price is rising to 40.25, reflecting a 7.48% increase and outperforming its sector. Despite a year-to-date return of -14.99% and challenges like high debt and weak long-term growth prospects, the stock shows strong short-term performance and increased investor participation.
As of 29-Sep, Supreme Facility Management Ltd's stock price is rising, currently at 40.25, reflecting an increase of 2.8 or 7.48%. Today's performance indicates that the stock has outperformed its sector by 8.26%, and it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, there has been a significant increase in investor participation, with delivery volume rising by 194.12% compared to the 5-day average. Despite a year-to-date return of -14.99%, the company has shown a profit increase of 14%, and its valuation appears attractive with a ROCE of 12.5 and a low enterprise value to capital employed ratio of 1.1. However, the company also faces challenges, including high debt levels and weak long-term fundamental strength, which may impact investor sentiment.

In the broader market context, the stock's short-term return of +0.75% over the past week contrasts with the Sensex, which has declined by 2.25% during the same period. This indicates that Supreme Facility Management Ltd is performing relatively well compared to the overall market. However, the company's long-term growth prospects are concerning, as evidenced by its weak net sales growth of 12.90% and operating profit growth of 13.65% over the last five years, coupled with a poor EBIT to interest ratio of 1.92. These factors suggest that while the stock is currently rising, underlying issues may pose risks for future performance.
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